Shulou(Shulou.com)06/02 Report--

On April 24, the annual report of Huaxia Happiness 2019 was released. According to the annual report, during the reporting period, Huaxia Happiness achieved an operating income of 105.21 billion yuan, an increase of 25.55% over the same period last year.

The net profit attributed to shareholders of listed companies was 14.612 billion yuan, an increase of 24.40% over the same period of the previous year.

However, from the perspective of Huaxia's happy cash flow and debt, there are a lot of hidden worries behind the glamorous financial report: the high debt ratio of 183% reflects that the enterprise's cash flow is worrying and its own hematopoietic ability is insufficient.

In the near future of gambling with Ping an, and during the critical period of performance consideration, Huaxia Happiness's net profit of 14.612 billion yuan has only just passed.

Under high pressure, the happy days in China are really not "happy".

High net debt ratio short-term borrowing rose by 535.48%

According to the 2019 financial report of Huaxia Happiness, by the end of 2019, Huaxia Happiness had total assets of 457.811 billion yuan and liabilities of 384.125 billion yuan, and its asset-liability ratio for the whole of 2019 was 83.9%.

But for real estate companies, the net debt ratio is more persuasive when it comes to measuring debt and risk. The net debt ratio is the debt-equity ratio. In calculation, the ratio of interest-bearing liabilities to owners' equity excluding money funds is the net debt ratio.

In terms of interest-bearing liabilities, long-and short-term loans, bonds payable, notes payable and illiquid liabilities due within one year are all covered.

One by one, the debt distribution of Huaxia's happiness at the end of 2019:

The amount of short-term loan is 26.575 billion yuan

The long-term loan is 48.789 billion yuan

Bonds payable are 68.464 billion yuan

33.818 billion yuan of illiquid liabilities due within one year.

The interest-bearing liabilities amount to 177.646 billion yuan.

Taken together, Huaxia Happiness has a net debt ratio of 183%.

This reflects that Huaxia Happiness in 2019 is more dependent on debt, and the increase in profits has something to do with the huge amount of borrowing capital.

Photo source: Huaxia Happiness 2019 earnings report

The loan balance of Huaxia Happiness has increased significantly in the past two years. The loan balance of Huaxia Happiness reached 139.039 billion yuan at the end of 2018 and increased by 40.2 billion to 179.2 billion yuan by the end of 2019.

In the first quarter of 2020, the amount of borrowing continued to increase, rising to 197.9 billion yuan.

Of all the loans borrowed by Huaxia Happiness in 2019, the increase in short-term loans attracted the most attention. At the beginning of 2019, the amount of short-term loans was 4.181 billion yuan, an increase of more than five times in just one year.

The borrowing structure of Huaxia Happiness is more complicated. Taking the latest data as an example, among the new loans of Huaxia Happiness in March 2020, the largest proportion is corporate bonds, corporate bonds, financial bonds and non-financial corporate debt financing instruments.

Huaxia Happiness said that the new loans were mainly used for the company's day-to-day operations and replenishment of liquidity.

Compared with Huaxia Happy 46.435 billion yuan of monetary funds, cash is difficult to cover short-term liquidity, the degree of financial tension can be seen one or two.

Among all the housing enterprises, Huaxia Happiness is a special existence, because so far, Huaxia Happiness has tried all the financing methods available.

According to statistics, Huaxia Happiness uses more than 20 financing methods, which is called "fancy financing Encyclopedia" by the media.

By the end of the reporting period, the weighted average cost of Huaxia Happiness financing was 7.86%, of which:

The average interest cost of bank loans is 6.37%.

The average cost of bonds and debt financing instruments is 7.25%.

The average interest cost of trust, asset management and other financing is 10.02%.

The high cost of financing is evident.

For real estate enterprises, the market boom in 2019 is not high, the sales area and prices of the real estate industry remain depressed, and the financing environment continues to tighten.

Taking the data of August 2019 as an example, according to the data of 40 typical listed real estate enterprises monitored by Tongze Research Institute, the total amount of financing completed by real estate enterprises in August 2019 is equivalent to 36.826 billion yuan, down 58.15% from the previous month.

It can be seen that the space for enterprises to move is very limited, under such a background, the financing cost of Huaxia Happiness will continue to rise, which is undoubtedly a big burden for Huaxia Happiness.

The decline in sales performance just passed the bet.

Of all the financial conditions of Huaxia Happiness in 2019, there is no doubt that the performance is the most concerned by the market, mainly because the three-year contract between Huaxia and Ping an will expire this year.

According to the financial report, the net profit of Huaxia Happiness attributed to shareholders of listed companies in 2019 was 14.612 billion yuan, an increase of 24.40% over the same period last year, while the net profit of 14.612 billion yuan was 65% higher than that in 2018.

In the bet with Ping an, Huaxia Happiness has just passed its performance in 2019.

According to the financial report, during the reporting period in 2019:

Huaxia Happiness achieved an operating income of 105.21 billion yuan, an increase of 25.55% over the same period last year.

Sales were 143.172 billion yuan, down 12% from the same period last year.

From 2015 to 2019, Huaxia Happiness's sales have declined for four consecutive years.

As for the decline in sales, Lin Chenghong, secretary of the board of directors of Huaxia Happiness, said that due to the lack of land acquisition and land acquisition in Peacock City in the previous two years, it affected the sales performance in 2019 and partly reflected the sales in the first quarter of 2020.

A few days ago, when we analyzed the performance of Huaxia Happiness, we said that the decline in the sales of Huaxia Happiness reflects the lack of investment. For details, see the previous article, "betting is approaching, performance is under pressure, will Huaxia Happiness always be" happy? ".

For real estate enterprises, the significance of land reserve is self-evident.

The regional nature of the real estate market is very strong, resources are easy to concentrate, in areas where it is difficult to sell, it is difficult to quickly turn into income.

This means that real estate enterprises want to achieve competitive advantage, land reserve, land price advantage is very important.

In the context of the general reduction of leverage in the real estate market, why does Huaxia Happiness dare to add leverage repeatedly and carry a heavy load?

Is it the courage given by peace?

As the saying goes, "if you have grain in your hand, don't panic!"

Although there is Ping an capital investment support, but if their own hematopoietic capacity is insufficient, but also frequent financing plus leverage, then even under the tree, cool is not so easy to take advantage of.

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